Public Joint Stock Company Severalmaz 2018 Geology The position - - PowerPoint PPT Presentation

Public Joint Stock Company Severalmaz

2018

Geology

The M.V. Lomonosov diamond deposit Current development project 2019 plan

6 Kimberly pipes

(Arkhangelskaya, Karpinskogo-1, Karpinskogo-2, Pionerskaya, Pomorskaya, the Lomonosova)

2 Kimberly pipes

(Arkhangelskaya, Karpinskogo-1)

2 Kimberly pipes

(Arkhangelskaya, Karpinskogo-1)

283,7 mln. t. ore 45,0 mln. t. ore 3,6 mln. t. ore 166,7 mln. crt. diamonds

(15% of all-Russian reserve)

58,8 mln. crt. diamonds 3,9 mln. crt. diamonds 460 m depth of reserves

Depths of quarries:

460 m - Arkhangelskaya 316 м - Karpinskogo-1

Depths of quarries:

206 m - Arkhangelskaya 156 м - Karpinskogo-1

• 1. Primary activity – Diamond extraction
• 10 Common mineral resources deposits of 494 000 m3 Sand-gravel mixture and 3 585 000 m3 sand in reserve
• 2 Groundwater deposits of 3000 m3/day (potable water) and 3600 m3/day (process water) in reserve
• 3. On the balance sheet of PJSC Severalmaz, in addition to the diamond deposit:

The position of mining

• perations Karpinskogo-1

The position of mining

• perations Arkhangelskaya
• 2. Range of geological exploration works

PJSC Severalmaz continues to search for new diamond deposits at 2 new licensed areas in the Arkhangelsk Region

Primary product

0,9 1,1 6,6 6,9 51,6 11,2 17,2 3,9 0,6 10 20 30 40 50 60

• 25+8
• 8+6,7
• 6,7+4,75
• 4,75+4
• 4+2
• 2+1,7
• 1,7+3 у.с.к.
• 3 у.с.к.+1
• 1+0,5

% Diamonds size classification, mm

• 2. Diamond quality

Majority of diamonds is colorless. Among colored diamonds:

• yellow;
• Smoky-brown;
• green;
• violet;
• pink;
• gray.
• 3. Diamond color scheme

split broadly into

• Gem-quality diamonds (GEM)

– 10%

• Near gem-quality diamonds(NEAR GEM) – 72%
• Industrial-grade diamonds (INDUSTRIAL) – 18%
• 1. Diamond extraction
• industrial grade of diamonds +3 conditional-sieve class (approx. 1,4 mm)

(in addition, diamonds smaller than 0,5 mm are extracted);

• The extraction for this class is 97% or more;
• Diamonds larger than 4 mm make up 15% of the mass and 40% of the value of all

products.

Key Performance Indicators

V

V

15092 14630 16825 2017 2018 2019 plan

Mined rock, TCM

4020 4036 3600 2017 2018 2019 plan

Ore mining, Kt

2642 3635 3900 2017 2018 2019 plan

Diamond extraction, K. crt.

3260 3452 3600 2017 2018 2019 plan

Ore procession, Kt

125052 131823 152955 2017 2018 2019 plan

Freight turnover, Ktkm

Technological process

Mining

Transportation Ore processing Final refinement Final product

►

Mined rock excavated with the use of hydraulic excavators with bucket capacity 7 and 15 m3.

►

Excavator car park in 2019 will consist of 6 excavators

►

To transport mined rock, dump trucks with a carrying capacity of up to 90 tons are used.

►

Truck car park in 2019 will consist of 28 pit trucks.

►

Ore processing process takes place in ore processing plant, which contains two technological lines №1 and №2.

►

Annual mining capacity of the plant is 4 million tons of ore.

►

At this stage, diamonds extracted from concentrate.

►

Diamonds are classified, sorted and graded according to all classification features shape, size, color and quality. Diamonds larger than 10.8 carats get certified.

►

After sorting, rough diamonds are sent to the Sales organization – subsidiary of ALROSA for preliminary evaluation and later sales of product

Capital investment

50,5; 95% 2,9; 5%

Capital invested since construction of the Lomonosov mining and processing complex

Construction Technical re-equipment and replacement of depreciated equipment

Time period Capital invested including: technical re-equipment 2004 - 2016 28,5 bill. rub. 1,1 bill. rub. Forecast for 2017-2025 24,9 bill. rub. 1,8 bill. rub. Total 53,4 bill. rub. 2,9 bill. rub.

Investments in capital expenditures up to 2025 will amount in total 53,4 bill. rub., including:

• Construction and installation, building equipment – 50,5
• bill. rub.
• technical re-equipment and replacement of depreciated

equipment – 2,9 bill. rub.

Earnings

Products realization, rendering of services and other realization:

• Revenues from realization of main product (diamonds) until

2025 will amount to 165.4 billion rubles;

• Revenues from services and other realization from 2004 to 2025

will amount to 1.6 billion rubles.

Time period Realization of main product (diamonds)

2008 - 2016 8,1 MM crt. 454,6 MM $ 21,0 BN Rub. Forecast for 2017-2025 36,7 MM crt. 2 080,6 MM $ 144,5 BN Rub. Total 44,8 MM crt. 2 535,2 MM $ 165,4 BN Rub.

165,4; 99% 1,6; 1%

Revenues from realization of products, works and services. Total

Main produce (diamnonds) Other services

Ecology

Components of the natural environment, which are covered by monitoring at the M.V. Lomonosov diamond deposit:

• Fish fauna;
• Animal fauna;
• Vegetation;
• Soil;
• Atmospheric air;
• The groundwater;
• Surface water.

PJSC Severalmaz spending for environmental protection: 2018 2019 (forecast) 19,45 mm rub. >16 mm rub. Since 2004, the remote monitoring of 100 sq. km area of the M.V. Lomonosov diamond deposit has been carried out using high-resolution space

• imagery. This method allows tracking of changes

in such large objects, such as waste rock dumps and tailing pond.

The complex of observations

• f the state of watercourses

and forest vegetation has been performed for over 20 years.

Local contracting organizations, that are well aware of the specifics of the region, are preferred to perform monitoring of the environment.

Regional strategy, charity and taxes.

Agreement with Primorsky municipal district Agreement with the government of Arkhangelsk region 2018 2 000 000 rub. 50 000 000 rub. 2019 forecast 2 000 000 rub. 50 000 000 rub.

80000; 13% 68000; 11% 80000; 13% 80000; 13% 106000; 17% 206000; 33%

Spent on charity in 2018 Total 620 000 rub.

Rembuevo orphanage Child center «Raduga» Child sport school «Kaskad», Hockey team Arkhangelsk-2005» PRO Veteran geological explorer Zolotitsa village One-time requests (except employees of Severalmaz)

Taxes and fees 2018

• 2 271 230 000 rubles

Human Resources

PJSC Severalmaz employs true professionals, a team of like-minded people, capable of solving problems of any complexity. We are rightfully proud of the employees of the company and plan our development relying on people, their professional qualities, skills and knowledge. All of the company’s achievements are defined by its employees.

Our faces

Interaction with educational institutions, student construction teams movement Increased social package Interaction with the work union Salary indexation Guarantees and compensation in accordance with the Collective Agreement of the Company and the legislation of the Russian Federation psychological help Corporate and cultural-leisure activities implementation of legislation in the field of labor protection and industrial safety; health protection Support of a healthy lifestyle; Sporting events Provision of service housing

1048 1208 1361 1557 1661 1710 1688 1660 1655

The dynamics of the number of employees of the company.

Sanatorium health improvement of employees continuous personnel development (training, education, retraining)

Arkhangelsk region; 36% Other regions of Russian Federation; 4% Arkhangelsk city; 59%

Percentage distribution of employees according to their place of living. dated 01.01.2019